Key Performance Indicators (KPIs) are tools that are used to help people analyse their business’ performance on a regular basis.

It would be a good idea for your business to select the key performance indicators that relate to your business (through budgets and previous financial results) and then have the key performance indicators calculated daily, weekly, monthly, quarterly and annually as required. This would enable the actual key performance indicators to be compared back to budget estimates to give management an indication of how the business is performing.

Here are some key performance indicators that would apply to most businesses:

  • Gross profit percentage

  • Labour to turnover percentage

  • Key expenses such as rent – to sales expressed as a percentage

  • Conversion rate (actual sales to prospects entering the store)

  • Average sale

  • Average sale per customer

  • Sales per square metre

  • Productive time %

  • Break Even & profit added

  • Write Off/On % (professional firms)

  • Debtors’ days outstanding

  • Stock on hand – number of days sales

  • Stock turnover

  • Creditors’ days outstanding

  • Shrinkage percentage (retail stores)

  • Net profit on sales %

  • Individual department sales to total sales


Let us know if you would like to discuss Key Performance Indicators and how they might help your business.

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